What are the requirements for project capital for bank project loans?

Relevant requirements for project capital for bank project loans: The state stipulates that construction projects must have capital, that is, the investor’s non- Debt funding. Projects in different industries require different proportions of capital to total investment. Bank loans cannot be used as project capital. Banks usually hold more than 30% of project capital.

Project loan, also known as project financing, or project financing, is a financing method guaranteed by the feasibility of the project itself with a relatively high return on investment or by the mortgage of a third party. The main forms of mortgage include project operation rights, project property rights and special government support (with documents), etc. The biggest difference between project financing and general loans is that the funds to repay the loan come from the project itself, not other sources.

Extended information:

To apply for a project loan, you must meet the following conditions:

1. Open a basic deposit account or general deposit account in a bank. Areas that implement loan certificate management must hold a loan certificate issued by the People's Bank of China; to apply for a foreign exchange project loan, you must hold an import certificate or registration document.

2. The project complies with national industrial policies, credit policies and our bank’s loan investment direction.

3. The project has a capital ratio required by the state.

4. Projects that require approval from relevant government departments must have approval documents.

5. The borrower has good credit status, strong repayment ability, complete management system, and the proportion of external equity investment complies with relevant national regulations.

6. Be able to provide legal and effective guarantees.